Multi-Family Build to Rent
Ground-Up Construction + Rental Holding
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Multi-family homes
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3–4 years
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Tax benefits
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Build and rent
Investing in Multi-Family Build to Rent Projects
Hezekiah Investment introduces a unique build-to-rent investment model that combines the advantages of a new multi-family development with those of a multi-family rental, all in one investment opportunity!
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Investing in this project pre-build allows you to build equity in the property while deferring taxes on those gains by extending your investment into the rental holding phase. As the project transitions into the rental phase, you can enjoy passive cash flow from rental income and benefit from property appreciation over time.
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Opting for new construction offers several benefits over purchasing an existing multi-family rental. With control over architecture and design, we can create spaces that appeal to today’s renters. Additionally, building from the ground up adds instant value and equity to the property before entering the rental phase.
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This well-crafted investment model is designed to maximize ROI for our investors and is an excellent option for those seeking to build a passive, long-term portfolio.
The Benefits of Investing in Multi-Family Build-to-Rent
Unique Investment Model.
This innovative model merges the advantages of new multi-family development with those of multi-family rentals, offering investors a comprehensive range of benefits. With this approach, you enjoy passive cash flow, property appreciation, tax benefits, and maximized returns. Furthermore, rentals provide additional tax advantages as income from the property, held long-term, is taxed at lower capital gains rates rather than as earned income.
Passive Investment.
With Hezekiah's investment model, you're relieved of the burdensome tasks associated with property analysis, financing, construction oversight, tenant acquisition, and rent collection. Our seasoned team of experts manages every aspect of the acquisition, construction, and ongoing rental management, allowing you to leverage our skills and knowledge to maximize your ROI without the hassle.
Cash Flow.
Investors receive quarterly disbursements from rental income, providing a steady stream of profit. Tenants pay monthly rent, contributing to property expenses and generating ongoing returns for investors.
Possible Cash-Out Refinancing.
Once the construction phase concludes, Hezekiah will assess the mortgage loan to evaluate whether prevailing interest rates and property appreciation justify refinancing. If a cash-out refinance proves financially advantageous, we can leverage the equity in the property to distribute funds back to investors.
The Process of a House Flip Investment
Choosing the Right Lot
At Hezekiah, our rigorous selection process ensures that we only pursue deals with the highest return potential. Our real estate analysts meticulously review numerous properties before identifying a single opportunity worth pursuing.
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Selecting the right lot and location is paramount for the success of a multi-family build-to-rent project. Recent zoning changes have expanded possibilities, allowing us to convert certain single-family lots into multi-family structures. This not only addresses housing shortages but also offers lucrative opportunities for investors. In many cases, we acquire low-cost single-family homes, demolish them, and construct multi-family properties from the ground up.
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Despite intense competition, Hezekiah leverages extensive industry connections to uncover deals inaccessible to typical investors. Collaborating with local real estate brokers, we often secure off-market deals below market value.
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Each Hezekiah project undergoes thorough due diligence, mitigating risks and maximizing investor returns.
Securing the Property
Once our real estate experts identify a promising property, we proceed by establishing the LLC that will hold the asset, securing necessary financing, completing all title and escrow documents, and successfully closing the deal.
Designing the Property
Our architects specialize in crafting modern multi-family structures, customized to suit the unique characteristics of each lot and tailored to meet the preferences of today's renters.
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Typically, our multi-family projects commence with the preparation of the lot for new construction, often involving the removal of distressed single-family structures to make way for the development.
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What sets Hezekiah's properties apart is our focus on creating spacious living environments that cater to various needs. In response to market demands, we often design large living spaces suitable for roommate arrangements and accommodating growing families opting to rent. This approach aligns with the rising trend of co-living, particularly in metropolitan areas like SWFL, where renters share the rent among multiple occupants to make housing more affordable. Additionally, there's an increasing demand for larger units from families seeking affordable, practical, and spacious living options.
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Moreover, Hezekiah has strategically tapped into the demand for affordable housing by offering Section 8 housing developments. Recognizing the heightened need for accessible housing in SWFL, the Section 8 program allows property owners to support low-income families, veterans, seniors, and differently-abled residents in securing safe housing. Under this program, the government subsidizes rent and utility payments for eligible tenants, ensuring fair market rates for property owners while providing affordable housing options. For such properties, we prioritize durable and practical features over high-cost amenities, aligning with the program's guidelines and objectives.
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Ultimately, our design choices are driven by our chosen investment strategy, which is informed by local demand dynamics and the preferences of our target renters.
Building the Property
Hezekiah takes full control of the construction process, managing every aspect from design and permitting to demolition, construction, and finishing touches. Our dedicated team ensures that each phase of the build aligns with our stringent quality standards. With a sizable workforce, we streamline project timelines without compromising on quality. Additionally, our extensive project portfolio enables us to leverage economies of scale, negotiating favorable deals on labor and materials to optimize costs and enhance potential returns for our investors.
Transitioning to a Rental Holding
Once construction wraps up, we focus on tenant acquisition to ensure each unit is occupied by qualified renters, stabilizing the property. Subsequently, we commission an appraisal to confirm the value of the newly constructed property, potentially leading to loan refinancing. This marks the onset of regular passive cash flow for investors, coupled with long-term appreciation during the rental phase of the investment. The best part? Investors need not invest any time or energy in the project to reap the benefits. Our expert property management team takes care of all day-to-day operations, ensuring a hassle-free experience for investors.
Timeframe
The multi-family build-to-rent project offers investors an opportunity with an approximate five-year investment horizon. During the development phase, which typically spans around 24 months, the property undergoes construction.
Once the construction is complete, each unit is leased out to tenants, and efforts are made to stabilize the property, ensuring consistent rental income. Hezekiah carefully monitors various factors such as prevailing market conditions, interest rate trends, and buyer demand to determine the most opportune time for selling the property. While the target rental period is estimated to be around three years, investors will receive regular updates regarding the property's performance.
When the decision is made to sell, investors will be notified as the property undergoes appraisal and is listed for sale. Upon the successful sale of the property and the closure of escrow, investors can expect to receive their distributions within a prompt timeframe of 10 business days.
Placing & Tracking an Investment
All investment opportunities are conveniently accessible directly on our website under the "Invest" tab, accessible by clicking "View All Investments." Once there, you can explore each investment project individually to gain comprehensive insights. Detailed information about each specific deal is provided, including essential details such as the property address, financial breakdown, estimated timeframe, investment strategy, area comparisons, and property photos.
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For investors' convenience, we offer an ROI calculator feature for each project, which outlines the minimum and maximum investment available. This calculator allows you to input your desired investment amount, providing you with an estimated target share in the property and an estimated return on your investment.
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Placing an investment is a straightforward process facilitated by our user-friendly interface. You'll be guided step-by-step through finalizing your investment request on our website. Once your investment is placed, you'll receive wire transfer and ACH instructions. To secure your place in the investment, you'll have a period of five business days to transfer the funds accordingly.
Once the project is active, you'll have access to comprehensive tracking tools through our user-friendly online dashboard. This dashboard provides you with real-time updates on your investment journey, allowing you to monitor progress from start to finish. You can easily visualize the project's advancement through the progress bar and view detailed progress photos showcasing the new construction developments. Additionally, we'll keep you informed via email updates as the project transitions through various stages.
For rental investments, you can conveniently track your scheduled rental payouts under the "Account" tab, where you'll find detailed statements outlining your returns.
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When the property reaches its maturity and is eventually sold, you'll receive your disbursements promptly via wire transfer. Upon receiving the funds, you can choose to enjoy your returns or explore new investment opportunities to further expand your portfolio and continue growing your wealth!